Two state-owned pharma firms are up for grabs: A number of investors are in talks with the Public Enterprises Ministry to acquire stakes in two pharma firms including Chemical Industries Development Company (CID) via a capital increase, Asharq Business quotes Minister Mahmoud Esmat as saying. Esmat declined to reveal the identity of the investors due to the ongoing negotiations. Information about the stake size and the advisors working on the sale wasn’t disclosed.

This isn’t the first we’ve heard about this: Al Mal reported in February that the government could sell 30-40% of CID to strategic investors, citing unnamed sources.

IPO not in the cards: Esmat ruled out a public share sale, telling the news outlet that it is not necessary due to the interest from strategic investors.

CID in numbers: The state-owned pharma firm had a net working capital of EGP 232.4 mn and reported an 8% growth in net earnings to EGP 61 mn in FY 2021-2022. The Holding Company for Pharma Industries (HoldiPharma) owns 100% of the company.

What is the second company? Misr Pharma, together with CID, were the only two pharma companies included in the list of 32 state-owned companies earmarked for privatization unveiled in February. Misr Pharma is also a subsidiary of HoldiPharma.

Privatization momentum is building: The news comes amid a series of reports of potential progress in selling state assets under the privatization program. Over the past week alone we’ve heard that Actis and Malaysian Edra are interested in acquiring one of the USD 2 bn Siemens-built power plants; the Port Said terminal operator is set to sell a 20% stake on the EGX; and Saudi Egyptian Industrial Investment is close to acquiring a 70% stake in a subsidiary of Metallurgical Industries Holding Company (MIH).

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